If a company uses a special payroll bank account:
A)The company does not need to issue paychecks.
B)The company draws one check for the entire payroll on the regular bank account and deposits it in the payroll bank account.
C)The company must use a federal depository bank for the payroll.
D)There is no need for a payroll register.
E)There is no need to issue W-2's.

Question

Quizplus · Accepted Answer

If a company uses a special payroll bank account, they can draw one check for the entire payroll on the regular bank account and deposit it in the payroll bank account. This allows for easier tracking of payroll expenses and ensures that funds are readily available for payroll. However, the company still needs to issue paychecks and W-2's and may use any depository bank for the payroll. Additionally, a payroll register is still necessary to keep track of payroll expenses.

If a Company Uses a Special Payroll Bank Account